The acquisition of G & F Manufacturing, LLC in Q4 2024 for $116.0 million contributed to the 6.8% increase in net sales for the Pool segment in Q1 2025. This acquisition of a pool heat pump manufacturer aligns with the strategy to provide energy-efficient pool solutions.

Pentair continued execution of its Transformation Program in Q1 2025, focusing on pricing excellence, strategic sourcing, operations excellence, and organizational effectiveness. This program is designed to accelerate growth and drive margin expansion, contributing to productivity gains and improved gross margins.

Management continues to identify and pursue specific product and geographic market opportunities, investing in research and development and additional sales and marketing resources. This proactive approach aims to drive core sales growth and penetrate new markets.

Management's Transformation Program initiatives led to increased productivity across all segments, which was a primary driver for the 1.5 percentage point increase in gross profit as a percentage of net sales in Q1 2025. This demonstrates effective execution of operational efficiency strategies.

The multi-year implementation of a new global ERP system made significant progress in Q1 2025, with a majority of Pool segment sales transactions now processed through it. This modernization effort is expected to enhance internal control over financial reporting and operational functionality.

Management implemented pricing increases across all segments to offset inflationary cost increases in raw materials, logistics, and labor. Additionally, strategies like inventory pre-buys and capping orders were used to manage supply chain impacts, demonstrating a proactive response to challenges.

The company stated there have been no material changes from the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024. This indicates a stable risk profile compared to the prior year-end.

Pentair anticipates continued inflationary cost increases for raw materials, logistics, and transportation throughout 2025. The potential for additional U.S. tariffs and reactionary tariffs from other countries are expected to further contribute to these cost pressures, impacting business results.

The adoption of the OECD Pillar Two Model Rules for a global 15.0% minimum tax negatively impacted Pentair's effective tax rate in Q1 2025 and is expected to continue to affect it in the future. This introduces an element of uncertainty regarding future tax liabilities.

Pentair successfully increased selling prices across all segments in Q1 2025 to mitigate inflationary cost increases. This ability to pass on higher costs to customers suggests a strong competitive position and pricing power within its markets.

The Pool segment reported a 6.8% increase in net sales in Q1 2025, driven by increased sales volume and the G & F Manufacturing acquisition. This performance highlights the segment's strong market position and ability to capitalize on demand.

Pentair emphasizes its industry-leading portfolio of smart, sustainable water solutions and innovative, energy-efficient pool solutions. Continued investment in R&D and digital initiatives aims to maintain and enhance these competitive advantages.

Increased productivity, primarily stemming from the ongoing Transformation Program initiatives, was a key factor in the 1.5 percentage point expansion of gross profit margin in Q1 2025. This indicates successful execution of efficiency improvements across operations.

Pentair initiated and continued business restructuring initiatives in Q1 2025, including a reduction of approximately 125 employees. These actions are aimed at reducing fixed cost structure and realigning the business to drive margin growth.

Transformation costs decreased to $9.1 million in Q1 2025 from $17.0 million in Q1 2024. While still an investment, the reduction suggests a more mature phase of the program, potentially leading to a greater net benefit from its initiatives.

Research and development expenses were $23.6 million in Q1 2025, a slight decrease from $24.1 million in Q1 2024. This sustained investment supports the development of new products and enhancements, particularly in smart and energy-efficient solutions.

Management's operating objectives for 2025 include accelerating investments in digital, innovation, technology, and sustainability. This highlights a strategic focus on leveraging digital capabilities to enhance business performance and product offerings.

The ongoing multi-year implementation of a new global ERP system is designed to modernize existing operating and transactional financial systems. This technological upgrade is expected to improve operational functionality and integration, supporting overall business efficiency.

Pentair repurchased 0.6 million ordinary shares for $50.0 million in Q1 2025, an increase from no repurchases in Q1 2024. With $400.0 million remaining under authorization, this activity signals management's confidence in the company's intrinsic value and commitment to shareholder returns.

The Board declared a quarterly cash dividend of $0.25 per share in Q1 2025, up from $0.23 per share in Q1 2024. This increase in dividend payout, totaling $41.2 million, reflects a continued commitment to returning cash to shareholders.

Long-term debt increased to $1,835.7 million at March 31, 2025, from $1,638.7 million at December 31, 2024, primarily due to net borrowings of revolving long-term debt of $196.2 million in Q1 2025. This indicates reliance on debt to support working capital and strategic initiatives.

Pentair's stated mission is to deliver 'smart, sustainable water solutions' to homes, businesses, and industries, focusing on clean water access, water consumption reduction, and water recovery/reuse. This inherent alignment positions the company favorably in the growing sustainability market.

Management explicitly states an objective to achieve long-term strategic operating and sustainability goals and targets. While specific Q1 metrics are not detailed in this filing, the stated commitment indicates an ongoing focus on ESG principles.

The Pool segment's focus on providing 'innovative, energy-efficient pool solutions' and the acquisition of G & F Manufacturing (pool heat pumps) underscore the company's product development strategy towards more environmentally conscious offerings.

The company expects ongoing inflationary cost increases for raw materials, logistics, and transportation, exacerbated by potential new or increased U.S. tariffs and retaliatory tariffs from other countries. These macroeconomic factors are anticipated to persist throughout 2025.

Unfavorable foreign currency effects contributed to the 0.7% decrease in consolidated net sales in Q1 2025, specifically impacting the Flow and Water Solutions segments. This highlights the ongoing exposure to currency volatility in international markets.

Pentair's business experiences seasonal cash usage in Q1, primarily due to advance sale programs for distributors' peak sales season in Q2 and Q3. Management anticipates this pattern to continue, with significant cash generation expected in Q2 2025.